Core Viewpoint - The China Securities Regulatory Commission (CSRC) has released a draft of the "Regulations on the Supervision and Management of Listed Companies" for public consultation, aiming to strengthen regulatory frameworks and promote high-quality development in the capital market [1][2]. Group 1: Regulatory Framework - The draft regulations aim to fill the gap in the regulatory framework for listed companies, which has been lacking a comprehensive administrative law that connects existing laws like the Securities Law and Company Law with the rules of the CSRC and stock exchanges [2]. - The regulations are seen as a necessary step to solidify the legal foundation for stringent supervision and management, reflecting the experiences gained from recent regulatory practices [1][3]. Group 2: High-Quality Development - The draft emphasizes three main aspects to promote high-quality development: enhancing the quality and effectiveness of mergers and acquisitions, improving investor returns through stable dividend policies, and strengthening corporate governance [4]. - It mandates listed companies and their executives to implement market value management and establish mechanisms for regular share buybacks [4]. Group 3: Risk Prevention and Strong Regulation - The draft outlines measures to prevent financial fraud, including prohibiting the preparation of false financial reports and requiring companies to establish robust internal control systems [5]. - It also emphasizes the prohibition of illegal fund occupation by controlling shareholders and the need for strict enforcement of delisting and restructuring regulations [5]. Group 4: Highlights of the Draft - The draft introduces specific regulations on corporate governance, making it a focal point for the first time at the administrative law level, thereby enhancing the effectiveness of existing laws [6]. - It provides detailed provisions for mergers and acquisitions, including definitions, qualifications for acquirers, and disclosure standards to stabilize market expectations [7]. - The draft intensifies the crackdown on illegal activities, particularly financial fraud, by reinforcing internal controls and establishing clear responsibilities for boards of directors [8]. - It includes a dedicated chapter on investor protection, aiming to enhance investor returns and prevent companies from evading delisting, while also ensuring that investors have options in case of company restructuring [9].

Group 1 - The State Council's 2025 legislative work plan outlines the latest developments in national legislation, emphasizing the need for comprehensive legal reform and improvement in legislative quality [1][2] - A total of 16 legal proposals and 30 administrative regulations are set to be reviewed by the National People's Congress Standing Committee in 2025, focusing on high-quality development and a high-level socialist market economy [2] - Key legislative proposals include revisions to financial laws, such as the Financial Law, Banking Supervision Law, and Securities Company Supervision Regulations, aimed at enhancing the regulatory framework for the financial sector [2][3] Group 2 - The legislative plan also addresses the need for laws related to foreign trade, intellectual property, and commercial mediation, indicating a push towards strengthening the legal framework for international business [3] - The plan includes provisions for the review and revision of existing regulations that do not align with economic and social development needs, ensuring a more unified and conducive business environment [3]